The Analytical Overview of the Main Currency Pairs on 2020.05.22

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.09794
  • Open: 1.09493
  • % chg. over the last day: -0.26
  • Day's range: 1.09065 – 1.09573
  • 52 wk range: 1.0777 – 1.1494

EUR/USD quotes have been declining. The euro has updated local lows. Demand for risky assets has weakened amid a new wave of tension between Washington and Beijing. Donald Trump said the United States would react "very strongly" if China imposed national security laws in Hong Kong in response to last year's democratic protests. The US Senate also passed a bill that allows the delisting of Chinese companies from stock exchanges. At the moment, the EUR/USD currency pair is consolidating in the range of 1.0900-1.0940. We expect the ECB meeting account. A trading instrument has the potential for further decline. We recommend opening positions from key levels.

The Economic News Feed for 22.05.2020:
  • At 14:30 (GMT+3:00), the ECB monetary policy meeting account will be published.
  • EUR/USD

    Indicators do not give accurate signals: the price has fixed between 50 MA and 100 MA.

    The MACD histogram is in the negative zone and below the signal line, which gives a strong signal to sell EUR/USD.

    Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

    Trading recommendations
    • Support levels: 1.0900, 1.0875, 1.0840
    • Resistance levels: 1.0940, 1.0975, 1.1000

    If the price fixes below the round level of 1.0900, a further fall in EUR/USD quotes is expected. The movement is tending to 1.0875-1.0840.

    An alternative could be the growth of EUR/USD quotes to 1.0970-1.0990.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.22340
  • Open: 1.22153
  • % chg. over the last day: -0.13
  • Day's range: 1.21624 – 1.22334
  • 52 wk range: 1.1466 – 1.3516

The bearish sentiment prevails on the GBP/USD currency pair. Quotes have updated local lows. At the moment, the trading instrument is testing the support level of 1.2160. The 1.2210 mark is the nearest resistance. The demand for risky assets is still low. The British pound is under pressure due to a weak report on retail sales in the UK. We do not exclude a further drop in GBP/USD quotes. We recommend opening positions from key levels.

GBP/USD

Indicators do not give accurate signals: 50 MA has crossed 100 MA.

The MACD histogram has started declining, which indicates the development of a negative trend on the GBP/USD currency pair.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the bearish sentiment.

Trading recommendations
  • Support levels: 1.2160, 1.2120, 1.2075
  • Resistance levels: 1.2210, 1.2245, 1.2290

If the price fixes below 1.2160, a further drop in GBP/USD quotes is expected. The movement is tending to the round level of 1.2100.

An alternative could be the growth of the GBP/USD currency pair to 1.2240-1.2280.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.39005
  • Open: 1.39549
  • % chg. over the last day: +0.38
  • Day's range: 1.39412 – 1.40350
  • 52 wk range: 1.2949 – 1.4668

The USD/CAD currency pair has been growing after a prolonged consolidation. During yesterday's and today's trading sessions, the growth of quotes has exceeded 130 points. At the moment, USD/CAD quotes are testing the "mirror" resistance of 1.4035. The 1.3990 mark is the nearest support. Investors have taken a wait-and-see attitude before the report on retail sales in Canada. We also recommend paying attention to the dynamics of "black gold" prices. Positions should be opened from key levels.

At 15:30 (GMT+3:00), data on retail sales will be published in Canada.

USD/CAD

Indicators do not give accurate signals: the price has crossed 100 MA.

The MACD histogram is in the positive zone and above the signal line, indicating the bullish sentiment.

Stochastic Oscillator is in the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.3990, 1.3960, 1.3910
  • Resistance levels: 1.4035, 1.4065, 1.4100

If the price fixes above 1.4035, further growth of the USD/CAD quotes is expected. The movement is tending to 1.4065-1.4100.

An alternative could be a decrease in the USD/CAD currency pair to 1.3970-1.3940.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.473
  • Open: 107.634
  • % chg. over the last day: +0.09
  • Day's range: 107.322 – 107.763
  • 52 wk range: 101.19 – 112.41

The technical pattern is still ambiguous on the USD/JPY currency pair. The trading instrument is in a sideways trend. At the moment, the local support and resistance levels are 107.35 and 107.65, respectively. The demand for “safe-haven” currencies has grown significantly. USD/JPY quotes are tending to decline. Positions should be opened from key levels.

The Bank of Japan will allocate about $279 billion to support the small business affected by the COVID-19 epidemic and prevent a recession in the economy.

USD/JPY

Indicators do not give accurate signals: the price has fixed between 50 MA and 100 MA.

The MACD histogram has moved into the negative zone, indicating the bearish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy USD/JPY.

Trading recommendations
  • Support levels: 107.35, 107.10, 106.80
  • Resistance levels: 107.65, 107.85, 108.05

If the price fixes below 107.35, USD/JPY quotes are expected to fall. The movement is tending to 107.10-106.80.

An alternative could be the growth of the USD/JPY currency pair to 107.90-108.10.

by JustForex, 2020.05.22

We recommend you to get acquainted with the daily overview of the news feed.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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